Buyer guide
Transferring money to buy property in France
If your money is not already in euros, the currency exchange is one of the biggest costs of buying in France, and one of the least talked about. On a purchase worth a million euros or more, the difference between a good rate and a bank's rate can be larger than the notaire's own fee. It is worth getting right.
Why your bank is the expensive option
High-street banks rarely charge an obvious fee on a large transfer. Instead they build their margin into the exchange rate itself, a markup of perhaps 2 to 4 percent over the real interbank rate. Because it is hidden in the rate, most people never see it. On a one million euro purchase, a 3 percent markup is thirty thousand euros that simply disappears.
See what it means for your own transfer with our currency transfer cost calculator.
How a specialist provider is different
A currency specialist quotes much closer to the real mid-market rate and charges a small, transparent fee or none at all. For a property purchase they offer two things a bank usually will not.
The first is a better rate on the spot transfer, which is where the headline saving comes from.
The second, and arguably more valuable, is the ability to lock a rate in advance.
Forward contracts protect your price
When you sign the compromis de vente, completion is still two or three months away. In that window the exchange rate can move against you, and on a large sum even a small move changes what you pay in your home currency. A forward contract lets you fix today's rate for a settlement date in the future, usually for a modest deposit. You know exactly what the property will cost you in dollars, pounds or francs, whatever the market does before completion. For a buyer whose income and savings are in another currency, that certainty is the whole point.
A sensible plan
- Get set up with a currency provider early, before you sign, so you are ready to move when you need to.
- Compare the rate they quote against the real mid-market rate on the day, not against your bank.
- If completion is months away, ask about a forward contract to fix your price.
- Keep clear records of the source of funds. French notaires must follow anti-money-laundering rules and will ask where the money comes from.
What about the notaire's account
The purchase funds are sent to the notaire, who holds them and completes the transaction. You still control how the money gets into euros before it reaches them, which is exactly where a specialist provider saves you money compared with letting your bank convert at its own rate.
Frequently asked questions
How much can I save versus my bank? On a large purchase, often 2 to 4 percent of the amount transferred, since that is the typical hidden markup banks build into the exchange rate. On a million euros that is tens of thousands.
What is a forward contract? An agreement to fix today's exchange rate for a payment you will make in the future, usually for a small deposit. It removes the risk of the rate moving against you before completion.
Is using a currency specialist safe? Reputable providers are regulated and keep client money separate. Check that the firm is authorised in its country before sending funds.
Will the notaire ask where my money comes from? Yes. Notaires must follow anti-money-laundering rules, so keep clear evidence of the source of your funds.
This guide is general information, not financial advice. Check that any provider is properly regulated before transferring funds.
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